LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 2456
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JULY 6, 2026
SUMMARY
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Synopsis: |
Requires school bus drivers and school bus aides to call 911 emergency line in potential life-threatening emergencies; requires certain school buses transporting students with disabilities to be equipped with certain safety features. |
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Type of Impact: |
Annual State expenditure and revenue increases; annual local expenditure and revenue increases. |
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Agencies Affected: |
Department of Education; New Jersey Motor Vehicle Commission; local school districts. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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State Revenue Increase |
Indeterminate |
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Local Expenditure Increase |
Indeterminate |
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Local Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the bill’s primary fiscal impact is to increase State costs associated with the New Jersey Motor Vehicle Commission providing funds to school districts and school bus contractors for the purchase and installation of school bus equipment required under the bill. The bill includes an open-ended appropriation providing amounts as needed for the bill’s purposes.
· Local school district expenditures will increase as a result of the bill, but those cost increases will be covered by State funds provided by the commission, as authorized by the bill.
· The Department of Education may experience an indeterminate increase in administrative costs to implement various training requirements for school bus drivers and school bus aides, maintain records related to certain training requirements and 911 calls made by school bus drivers and school bus aides, and develop a process for the investigation of complaints from the parents or guardians of students with disabilities who believe that school bus drivers and school bus aides did not comply with proper procedures for calling 911 in the event of a potential life-threatening emergency on a school bus.
· The bill may also result in an indeterminate increase in costs to the New Jersey Motor Vehicle Commission to the extent that additional resources are needed to inspect certain school buses for proper installation of the equipment required by the bill. Any costs, however, will at least be partially offset by school bus inspections fees that are currently collected by the commission.
· Finally, the bill may result in an indeterminate, likely minor revenue gain for the State due to provisions of the bill that levy certain fines on boards of education and school bus contractors and certain civil penalties on school bus drivers and school bus aides.
BILL DESCRIPTION
This bill includes several provisions related to school bus safety.
Among several other provisions, the bill requires a board of education, or a school bus contractor as applicable, to ensure that certain training related to school bus safety is provided to each school bus driver and school bus aide who works on a school bus. Pursuant to current law, these training programs are required to include student management and discipline, school bus accident and emergency procedures, emergency exit drills, loading and unloading procedures, loading zone safety, inspecting the school vehicle for students left on board, and the use of a student’s education records. The bill expands these programs to cover understanding behaviors and other signs that may indicate circumstances in which a potential life-threatening emergency is occurring on a school bus. A board of education or school bus contractor that does not properly administer these training programs is to be subject to applicable penalties established under current law.
The bill provides that the parent or guardian of a student who believes that a school bus driver or school bus aide did not properly call the 911 emergency telephone service in the event of a potential life-threatening emergency may file a complaint with the Department of Education. A school bus driver or school bus aide who is accused of not properly calling the 911 emergency telephone service in the event of a potential life-threatening emergency is required to be afforded the opportunity for a hearing, and are entitled to representation, including by a union representative or legal counsel provided by a union, throughout the course of any investigation conducted or hearing held. A school bus driver or school bus aide who is found by the department to have violated the provisions concerning 911 emergency notification and follow-up reporting requirements is to be liable for certain civil penalties.
The bill also requires a school bus that transports one or more students with disabilities with special transportation requirements to be equipped with: (1) a video camera on the interior of the school bus to monitor student safety while the students are being transported; (2) a global positioning system that provides information about the location and speed of each school bus in real time; and (3) two-way communications equipment, which may include a cellular or other wireless telephone. The bill permits, subject to the availability of funds, a board of education and a contractor providing pupil transportation services under contract with a board of education to apply to the New Jersey Motor Vehicle Commission for funds to purchase and install the equipment. The bill appropriates from the General Fund to the commission such sums as are necessary to provide these funds.
The bill requires each in-terminal school bus inspection conducted by the commission to provide for the inspection of the equipment required to be installed on school buses pursuant to the bill.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the provisions of this bill would have varying fiscal impacts, as described in further detail below.
School District Cost Increases to Install Certain Equipment on School Buses
The OLS concludes that the bill’s primary fiscal impact is to increase State costs associated with the New Jersey Motor Vehicle Commission providing funds to school districts and school bus contractors for the purchase and installation of school bus equipment required under the bill. The bill includes an open-ended appropriation providing amounts as needed for the bill’s purposes. The OLS does not have access to information concerning the number of qualifying school buses, and therefore cannot definitively estimate the costs of purchasing and installing interior video cameras, global positioning systems, and two-way communications equipment on school buses subject to the provisions of the bill. However, the OLS notes that a reasonable range of costs for the purchase and installation of the required equipment on one school bus subject to the provisions of the bill is between $1,100 and $3,900. The OLS also notes that a fiscal estimate for a substantially similar bill in a previous legislative session found that total costs to install the same equipment required under this bill for all school buses transporting one or more students with disabilities could be as high as $51.9 million. That bill, however, applied to school buses transporting all students with disabilities; whereas, this bill applies to school buses transporting students with disabilities who have special transportation requirements.
Potential Cost Increase to the Department of Education
The bill includes various requirements on the Department of Education that may result in increased costs to the department to the extent that the requirements necessitate additional staff resources. The OLS, however, has no insights into whether the department would rely on existing staff, hire additional staff, or engage a third-party vendor in order to effectuate the requirements. Pursuant to the bill, the department is responsible for: updating a training program established under current law concerning proper procedures for interacting with students with disabilities; and establishing procedures to take in and investigate complaints from parents and guardians of students with disabilities who believe that a school bus driver or school bus aide did not follow proper procedures in calling 911 in the event of a potential life-threatening injury.
Potential Cost Increase to the New Jersey Motor Vehicle Commission
The commission may experience cost increases stemming from the bill’s requirement to include in the in-terminal school bus inspection program the inspection of the equipment required to be installed on school buses under the bill. Any cost increases would only occur to the extent that additional resources are needed for the inspections required by the bill. Potential costs to the commission, however, will at least be partially offset by school bus inspections fees that are currently collected by the commission. State law establishes $25 fees for school bus inspections and reinspections. According to information in the FY 2027 Governor’s Budget, a total of 71,469 school bus inspections and reinspections were completed in FY 2025.
State Revenue Increases
Finally, the bill may result in indeterminate, likely minor revenue gains for the State due to provisions of the bill that levy certain fines on boards of education and school bus contractors and certain civil penalties on school bus drivers and school bus aides. The bill amends current law establishing fines on boards of education and contractors for approving or assigning unauthorized individuals as bus drivers to include school bus aides. Under law, fines are: not more than $5,000 for each driver unlawfully approved or assigned for the first offense; not more than $10,000 for each driver unlawfully approved or assigned for the second offense; and not more than $15,000 for each driver unlawfully approved or assigned for a third and each subsequent offense. The bill also establishes new civil penalties on school bus drivers and school bus aides who are found to have violated the provisions of the bill related to calling 911 in the event of a potential life-threatening emergency. The penalties are $2,500 for the first offense, $5,000 for the second offense, and $10,000 for the third and each subsequent offense.
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Section: |
Education |
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Analyst: |
Senior Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).